Britain must pay EU divorce bill in euros

Britain may be leaving the EU but it will still have to settle the divorce bill in euros, not pounds, according to an EU document on the upcoming negotiations.

“An orderly withdrawal of the United Kingdom from the Union requires settling the financial obligations undertaken before the withdrawal date,” said the European Commission document seen by AFP yesterday (20 April).

“The agreement should define the precise way in which these obligations will be calculated … the obligations should be defined in euro(s),” it added.

The document did not say how much the Brexit settlement might cost but EU officials have previously said it could be as much as €60 billion, sparking howls of outrage in London which puts the figure nearer €20 billion.

EXCLUSIVE / EU Budget Commissioner Günter Oettinger has told EURACTIV.com that the €60 billion bill floated as the price of Brexit is “not totally wrong”, just days before Britain triggers Article 50, the legal process to leave the bloc.

Titled “Non Paper on key elements likely to feature in the draft negotiating directives,” the document was drawn up by the European Commission which will conduct the Brexit negotiations with the UK.

The document covers in greater detail the same ground outlined last month by EU Council President Donald Tusk in response to Prime Minister Theresa May’s official 29 March notification that Britain was leaving the bloc.

Citizens’ rights

Tusk stressed then that the European Union will insist on agreeing on the future of EU citizens in Britain and the Brexit bill first before considering London’s demand for a free trade pact.

British Prime Minister Theresa May and European Council President Donald Tusk agreed yesterday (6 April) to try to lower tensions in upcoming Brexit talks, especially over issues such as Gibraltar.

The Commission document outlined its aims for a reciprocal deal for EU citizens in the UK and Brits elsewhere in the bloc, saying their rights should last “for the life time of those concerned” rather than giving a cut-off date.

The Brexit divorce settlement should not just be limited to workers, the paper said, and should also apply to family members who join citizens “at any point in time before/after the withdrawal date”.

Residency and social security were also highlighted by the Commission as rights it will seek to protect in the two-year negotiations with London, as the two sides try to undo the mass of legislation agreed on since Britain joined the then-European Community in 1973.

Both the divorce bill and the fate of EU citizens are expected to be among the toughest areas to reach agreement on, following a Brexit campaign which railed against the UK’s payments to Brussels and the number of migrants in the country.

Anticipating possible disputes, the draft paper envisaged setting up “an institutional structure to ensure an effective enforcement of the commitments under the agreement”, while maintaining the primacy of the European Court of Justice.

EU Commission head Jean-Claude Juncker and the bloc’s chief Brexit negotiator Michel Barnier will hold talks with British Prime Minister Theresa May in London next Wednesday (26 April), a spokeswoman said.

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One response to “Britain must pay EU divorce bill in euros”

I wonder if the EU will accept a cheque – a rubber one – I am confident that the pound will recover – exports are bound to rise – everything will be well in the best of all possible worlds – looking on the positive side I hear the Tories can boast one success – the Uk national debt under their careful management is at an all time high – bravo Mrs May-hem – this bodes well for the negotiations.